If so, she'd be well advised to live there as her PPR for sufficient time after inheriting it to qualify for Dwelling House Relief, providing she otherwise qualifies.She may have a CAT liability if she is inheriting a house that worth € 550k and the tax-free threshold is € 335k for all gifts/inheritences since Dec 1991
Was that not done away with because it was being abused? (parent buying a second home and letting child live in it and them inherit it tax free under Dwelling House Relief).If so, she'd be well advised to live there as her PPR for sufficient time after inheriting it to qualify for Dwelling House Relief, providing she otherwise qualifies.
Was it? The relief is still on the books although there were changes to it alright.Was that not done away with because it was being abused? (parent buying a second home and letting child live in it and them inherit it tax free under Dwelling House Relief).
I don't know, I was hoping you would tell meWas it? The relief is still on the books although there were changes to it alright.
The person receiving the inheritance here should check in any case.
I don't have every piece of information at my fingertips either.I don't know, I was hoping you would tell meI remember there were some changes made but I can't remember what they are.
Thank you. I think the first line is the bit that was changed. Previously, it did not specify that it had to be the disponer's home.Qualifying conditions for inheritance on, or after, 25 December 2016
You will be exempt from Capital Acquisitions Tax (CAT) on the inheritance of a dwelling house if, at the date of the inheritance:
- the house was the only or main home of the person who died (this condition does not apply if you are a dependent relative)
- you lived in the house as your only or main home for the three years immediately before the date of the inheritance
- you do not own, or have an interest in, any other house
- you do not acquire an interest in any other house from the same disponer between the date of the inheritance and the valuation date
- the house continues to be your only or main home for six years after the date of the inheritance. This does not apply if you:
- are aged 65 years or over at the date of the inheritance
- are required by reason of employment to live elsewhere
- or
- are required to live elsewhere because of mental or physical infirmity, and this is certified by a doctor.
Ahh thanks for that jpd!If she lives in the property as her PPR before selling it, then there is no CGT - the property will be her PPR for the whole period of ownership
She may have a CAT liability if she is inheriting a house that worth € 550k and the tax-free threshold is € 335k for all gifts/inheritences since Dec 1991
If she has no prior inheritances/gifts, the CAT tax will be (550 - 335) x 33% = € 72k
This seems excluded based on it not being my Mam's PPR.It seems unlikely, based on the OP's description, that the exemption would apply, as the property is described as an investment property of the parent, which was let to the daughter.
Worth checking though, certainly, given the CAT exposure.
Attempting to play around with valuation ranges is a recipe for trouble. Invest in a quality independent valuation of both properties, performed by the best and most knowledgeable valuer you can find, and you won't regret it.So based on this am I right in thinking for my sister if there is a valuation range of 500k - 550k for this investment house we should use the lower as there is no future liability?
But for the family home divided between the 3 other siblings, if the valuation range is 900k - 990k, then we are better using the upper so as to avoid CGT owed by estate if it sells higher than the probate value?
This should be the only approach taken by the executorAttempting to play around with valuation ranges is a recipe for trouble. Invest in a quality independent valuation of both properties, performed by the best and most knowledgeable valuer you can find, and you won't regret it.
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